Reference
Stablecoin glossary
Terms that come up across the site, written so a non-specialist can read them in one pass. Each definition links out to the report where we use the term in context.
A
- Algorithmic stablecoin
- A token that tries to hold a one-dollar peg without holding one dollar of off-chain collateral per coin. Supply is expanded or contracted by code, often using a second "share" token. The Terra USD design that failed in May 2022 is the most famous example. See the primer.
- Attestation
- A short report from an accounting firm confirming that an issuer held certain assets on a specific date. Not the same as a full audit. Tether publishes a quarterly attestation by BDO. Circle publishes a monthly attestation by Deloitte. An attestation tells you a snapshot was checked; it does not commit the firm to a broader opinion on the company's controls.
- Audit (financial)
- An independent opinion on whether financial statements are fairly presented, in all material respects, under the stated accounting framework. It is different from a reserve attestation and does not automatically include a separate opinion on internal controls. Circle's 2025 Form 10-K contains audited consolidated financial statements; it does not include an independent internal-control attestation for that year. Neither report guarantees a token's market price.
B–C
- Binance
- A cryptocurrency exchange with spot and other trading services. Market depth varies by pair and venue. StableDesk publishes a Binance referral code and may receive a commission from qualifying referrals; full disclosure.
- BUSD
- A US-regulated dollar stablecoin issued by Paxos under contract with Binance. NYDFS ordered Paxos to stop minting new BUSD in February 2023. Existing BUSD wound down over about 18 months; the token is no longer the working dollar inside Binance.
- CFTC
- US Commodity Futures Trading Commission. Has settled enforcement actions against both Tether (2021) and Binance (2023) related to derivatives and reporting.
- Circle
- The group behind USDC, with the issuing entity and applicable rules depending on jurisdiction. Circle Internet Group completed its NYSE IPO under CRCL in June 2025, as recorded in its second-quarter 2025 results.
- Cross-chain bridge
- A protocol that moves a token between blockchains. Stablecoins use bridges to circulate between Ethereum, Tron, Solana, BNB Chain and others. Bridges have historically been the single largest target for crypto exploits: Ronin, Wormhole, Nomad, Multichain. See the cross-chain report on the Chinese edition for the long version.
D–E
- DAI
- The largest crypto-collateralised stablecoin alive, issued by MakerDAO (now Sky). Backed by a mix of USDC, ETH and real-world assets. From August 2024, MakerDAO rebranded the same token line as USDS, with DAI remaining available.
- Depeg
- An episode where a stablecoin price moves away from the value it is meant to track. The size and duration vary. USDC fell below its peg over the SVB weekend in March 2023 and recovered on 13 March, after the 12 March joint statement by the Treasury, Federal Reserve and FDIC; UST's depeg in May 2022 was permanent.
- EURC
- Circle's euro-referenced stablecoin. Compliance positioning shifted significantly after MiCA came into force in mid-2024.
F–H
- FCA
- UK Financial Conduct Authority. Maintains the UK crypto asset registration regime and supervises payment-services rules that touch fiat on-ramps.
- FDUSD
- First Digital USD. The current issuer is FD121 (BVI) Limited; the company's disclosure distinguishes this BVI issuer from First Digital Trust, the reserve custodian. A custodian's Hong Kong trust status does not make the token a Hong Kong-licensed stablecoin.
- FinCEN
- US Financial Crimes Enforcement Network. Regulates money services businesses (MSBs) and runs the SARs reporting regime that touches large stablecoin movements.
- FOMC liquidity
- Not a stablecoin term but worth knowing. US short-term interest rates set by the Federal Reserve drive most of the income on T-bill-backed reserves (USDT, USDC, FDUSD, PYUSD). When rates fall, issuer revenue falls; when rates rise, it rises.
- HKMA
- Hong Kong Monetary Authority. Runs the Hong Kong stablecoin licensing regime that came into force in 2025.
I–N
- Issuer
- The legal entity that mints a stablecoin. For USDT this is Tether Limited. For USDC it is Circle Internet Financial. For FDUSD it is First Digital Labs.
- Liquidity
- How easily you can swap a coin for cash or for another asset at a fair price. For USDT, liquidity is deepest on Binance and OKX spot books. For USDC, deepest on Coinbase and Kraken. The depth gap matters during a depeg, when forced selling drains the thinner side first.
- MAS
- Monetary Authority of Singapore. Runs the Payment Services Act regime that licenses major digital payment token services.
- MiCA
- Markets in Crypto-Assets Regulation. Under Article 149, its stablecoin provisions apply from June 30, 2024 and its general application date is December 30, 2024. Token availability also depends on the provider and service.
- NYAG
- New York Attorney General. Settled an 18.5 million dollar action against Bitfinex and Tether in February 2021. The order produced the first detailed Tether reserve breakdown to reach the public.
- NY DFS
- New York Department of Financial Services. Administers the state's BitLicense regime and supervises entities within its jurisdiction. Historical oversight should not be assumed to remain current: Paxos states that it completed its national trust conversion on December 12, 2025; PYUSD is now issued by Paxos Trust Company, N.A. under OCC supervision.
O–R
- OFAC
- US Office of Foreign Assets Control. Maintains the sanctions list. USDT and USDC freezing of sanctioned addresses operates within OFAC requirements.
- Peg
- The reference value a stablecoin promises to track. For USDT, USDC, DAI, FDUSD and PYUSD: one US dollar. For EURC: one euro. The peg is held by a combination of arbitrage, redemption mechanics and (in the case of fiat-backed coins) the issuer's reserves.
- Proof of Reserves (PoR)
- An exchange's published snapshot of customer assets held against on-chain wallets. Useful but limited: a snapshot does not prove that the assets were not borrowed for the day. PoR is not equivalent to a financial audit.
- Redemption
- The right to send a stablecoin back to its issuer in exchange for dollars. Circle accepts redemptions from approved institutional clients. Tether accepts redemptions over a minimum threshold. Retail holders almost always exit through an exchange instead.
- RWA
- Real-world assets. In the stablecoin context: T-bills, money-market funds, repurchase agreements and similar holdings that sit in the reserve. DAI's RWA exposure has grown significantly under Sky.
S–U
- SEC
- US Securities and Exchange Commission. Has examined whether specific stablecoins qualify as securities and taken enforcement actions touching the category, including the BUSD matter.
- SFC
- Securities and Futures Commission of Hong Kong. Runs the VATP (virtual asset trading platform) licensing regime.
- Stablecoin
- A token designed to hold a stable price reference (usually one US dollar). Four broad families: fiat-backed, crypto-collateralised, algorithmic, commodity-backed. See the primer.
- SVB
- Silicon Valley Bank. Failed in March 2023. Held 3.3 billion dollars of Circle's USDC reserves at the time of failure; the freeze caused the USDC weekend depeg.
- Tether
- Issuer of USDT. Reserve composition disclosed quarterly via BDO attestation.
- USDC
- Circle's dollar stablecoin. Circle Internet Financial, LLC holds a virtual currency licence and a money transmitter licence from the New York Department of Financial Services, per Circle's licences page. About 75.2 billion USDC in circulation as of 24 September 2026, per Circle's USDC page.
- USDT
- Tether's dollar stablecoin. The largest stablecoin by supply; see Tether's transparency page for the current figure. The dominant unit on most CEX spot books.
V–Z
- VATP
- Virtual asset trading platform. Hong Kong SFC licence category covering retail-facing crypto exchanges.
- Wash trade
- Trading with yourself to inflate apparent volume. Reported volumes on some smaller exchanges include wash activity.
- Yield
- Income earned by lending or staking a stablecoin. USDT and USDC sit in lending markets like Aave and Compound, in Curve pools, in CEX flexible savings products and in newer T-bill-linked vaults. Yields vary with rates and demand; nothing here is risk-free.